Ethereum: Paradoxical Situation
Ethereum has faced a turbulent week as large investors offloaded over $360 million worth of the cryptocurrency. The sell-off came amid broader market pressure, with the token struggling to stay above the $3,000 mark. Despite this, retail interest appears strong, with new addresses hitting record numbers.
Between December 11 and December 21, 2025, Ethereum ETFs and major institutional holders sold more than $360 million in ETH. Their combined holdings dropped from 5.73 million tokens to 5.61 million. The price of Ethereum hovered around $3,200 but showed signs of weakness, failing to maintain a steady position above $3,000.
Meanwhile, retail investors continued to enter the market. Daily new Ethereum addresses surged past 190,000 in December, suggesting growing participation from smaller traders. This contrast between institutional outflows and retail activity highlights mixed sentiment in the market.
On the development side, Ethereum’s recent 'Fusaka' upgrade introduced improvements aimed at reducing transaction costs on Layer-2 networks. The Ethereum Foundation also set a long-term goal: achieving 128-bit security for zero-knowledge Ethereum Virtual Machines (zkEVMs) by the end of 2026.
Despite the current price dip, analysts like AltcoinVector and Michael van de Poppe remain optimistic about Ethereum’s future. Their bullish outlook contrasts with the recent outflows, which totalled over $700 million across seven consecutive days.
Ethereum’s price remains under pressure, with institutional sell-offs and ETF outflows weighing on the market. However, ongoing upgrades and strong retail engagement suggest continued interest in the network. The foundation’s security targets and analyst confidence may influence its trajectory in the coming months.
